Japan's relaxation of Security Token Offering (STO) rules has significantly impacted the market. By easing registration and disclosure requirements, the Financial Instruments and Exchange Act amendments since 2019 have boosted market entry for startups and financial institutions. This has spurred growth in digital securities, particularly in real estate and corporate notes, with issuance reaching ¥127 billion by 2023. The Japan Security Token Offering Association’s self-regulatory guidelines enhance investor protection and market clarity, fostering confidence. Relaxed rules have increased liquidity and accessibility, attracting institutional and retail investors. Trading on platforms like the Osaka Digital Exchange, starting with firms like Ichigo and Kenedix, signals strong demand for alternative assets, positioning Japan as a leading STO hub in Asia.